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Success & Failures in

Organizational Design

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Considerations when developing an organizationdesign

Start with a statement of strategic intent

Determine the high level organizational boundaries that supportthe strategic intent

Where you draw boundaries is critical to strategy execution

Include integrating mechanisms to ensure that the right dialogueoccurs among groups

While organization redesign is not about a silver bullet! or a"uic# fix$ it can generate "uic# results%

Organization design is more than moving the boxesoor executive performance is often blamed for poor design%

'reate the right integration mechanisms to align the productstructure with overall business ob(ectives

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How do you know an organization design issuccessful

)here is a faster cycle time for developing the rightproducts/services definedby company strategy%

)he company*s resources move "uic#ly when needed%

+our business is able to adapt to changes in mar#etconditions "uic#ly$

without creating a feeling of chaos to employees andsuppliers%

Wor# is getting done efficiently , without rewor#$excessive reviews%

)he right information is getting to the right people%

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Reasons for failure of organization design

eople are too detached and do not see their presentsituation in detail

ast experience is limited

Inability to wor# with the available resourcesreoccupation with decision rationality ma#es it

impossible for people to accept the rationality ofdecision ma#ing

Striving for perfection leads to inability to bear theaesthetics of imperfection

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5

Social -esponsibility

Social responsibility: refers to a manager*s dutyor obligation to ma#e decisions that nurture$ protect$enhance$ and promote the welfare and well.being of

sta#eholders and society as a whole

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6

/pproaches to Social -esponsibility

Obstructionist approach: the low end of theorganization*s commitment to social responsibility

0anagers choose to behave unethically and illegally

Defensive approach: a minimal commitment toethical behavior

0anagers attempt to stay within the law but do not attemptsocial responsibility beyond what is re"uired by law

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7

/pproaches to Social -esponsibility 1cont%2

Accoodative approach: theac#nowledgment of the need to support socialresponsibility 0anagers want to ma#e the right choices when called on

to do so!roactive approach: actively embrace the need

to behave in socially responsible ways 0anagers go out of their way to learn about the needs of

different sta#eholder groupsWilling to utilize organizational resources to promote the

interests not only of stoc#holders$ but of othersta#eholders

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8

/pproaches to Social -esponsibility

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9

Why 3e Socially -esponsible4

Wor#ers and society benefit directly becauseorganizations bear some of the costs of helpingwor#ers

5uality of life as a whole would be higher as aclimate of caring is encouraged

It is the right thing to do

'ompanies that act responsibly toward their

sta#eholders benefit from increasing business andsee their profits rise

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10

Why 3e Socially -esponsible4 1cont%2

"histle#blower: a person who reports illegal orunethical behavior )a#es a stand against unscrupulous managers or other

sta#eholders

6vidence suggests that managers who behavesocially responsibly will$ in the long run$ benefit allorganizational sta#eholders

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/rguments for Social -esponsibility

ublic expectations

7ong run profits

6thical obligation

ublic image3etter environment

Discouragement of further government regulation

3alance of responsibility and power

Stoc#holder interestsossession of resources

Superiority of prevention over cures

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/rguments against Social -esponsibility

8iolation of profit maximization

Dilution of purpose

'osts

)oo much power7ac# of s#ills

7ac# of accountability

7ac# of broad public support

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'reativity

0eaning9 'reativity means the ability to develop anew ob(ect or a new idea% 'reativity is regarded as a

vital tool in the invention and discovery of new ideasas well as ob(ects%

Definition9 /cc to )orrance$ 'reative thin#ing is theprocess of sensing difficulties$ problems$ gaps ininformation$ missing elements$ ma#ing guesses and

hypotheses about the solution of these deficiencies:evaluating and testing these hypotheses: possiblyrevising and restating them: and finallycommunicating the result%

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$raits of Creative !eople

'reative people are curious%

'reative people li#e challenges%

'reative people are not afraid to experiment

'reative people have high standards%'reative people #now how to accept and give

constructive criticism

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'omponents of 'reativity

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'reativity rocess

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'reativity rocess

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'reativity )echni"ues

3rainstorming0ind.mapping

Force field analysis

-apid prototyping

Synectics

Idea 3ox

0etaphor/ttribute listing

Serendipity

8isual thin#ing

0orphological analysis

Suggestion schemes

;euristics

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3enefits of 'reativity

)o individuals9

;elp you ma#e the best use of your talents$ aptitudesand abilities

6nhance the en(oyment of your (ob

'ause you to have more self.confidence

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3enefits of 'reativity

)o the Organization9

organizational adaptability

highly engaged$ motivated$ diverse and creative

talent delivers competitive advantage diversity of ideas$ capabilities and perspectives

attract$ retain$ and cultivate the brightest talent intheir industry

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An Experiential Approach to OrganizationDevelopment 8thedition

'hapter >?Slide @>

Strategy.'ulture Fit

Strategy9 'ourse of action used to achieve ob(ectives% -elates resources of organization to opportunities in

environment%

'ulture9 Set of values for setting priorities% 'ritical factor in implementation of strategy%

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An Experiential Approach to OrganizationDevelopment 8thedition

'hapter >?Slide @@

Figure >?%?Strategy.'ulture 0atrix

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An Experiential Approach to OrganizationDevelopment 8thedition

'hapter >?Slide @A

Strategy.'ulture 0atrix

Four basic alternatives in determining strategychanges9

>% 0anage change 1manageable ris#2%

'hange important and compatible with culture%

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An Experiential Approach to OrganizationDevelopment 8thedition

'hapter >?Slide @B

Strategy.'ulture 0atrix 'ontC

A% 0anage around culture 1manageable ris#2% 'hange important and incompatible with present culture% -einforce value system$ reshuffle power$ use leverage in the

organization%

B% 'hange strategy to fit culture 1unacceptable ris#2% 'hange important but incompatible with culture% 'hanging culture is explosive$ long.term process that may

be impossible%

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Strategic 'hange 0anagement

Strategic change is defined as changes in thecontent of a firms strategy as defined by its scope$resource deployments$ competitive advantages$ andsynergy

In simple form strategic change is a way of changingthe ob(ectives and vision of the company in order toobtain greater success%

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Strategic 'hange 0anagement rocess

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-ole of ;- professionals in strategic changemanagement

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-ole of ;- professionals in strategic changemanagement

$echnical Specialist: )echnical specialists apply intensive#nowledge of specific technical areas to address and resolveimmediate needs of business%

Advisor: /s technical consultants$ advisors develop innovative

;- solutions to address customer issues and achieve specificbusiness goals 1with an eye on those of tomorrow2%

Strategic !artner: Strategic business partners identify broad;- issues ahead of business leaders: they are high.levelconsultants who develop strategies to address long.term business

needs%%eader:)he leadershipEmanagement role can be and often is

incorporated into any of the above roles or stand alone$depending on where in the organization it is found%

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-ole of ;- professionals in strategic changemanagement

Role of Scout: Scan both the internal businessenvironment and external environment%

Role of Chess aster: Influencing others andconstantly evaluate all the other players or factors thataffect change%

Role of Cartographer:/dvise and educate executiveson how to best manage change efforts$ literally provideroad maps and critical elements for successful change%

Role of Architect:-ethin# the design of systems andprocesses for managing human performance%